‘Cautious optimism’ prevails in volatile rate environment
“We’re still focusing on the overall budget and payment,” she said. “Unfortunately, with rates as volatile as they have been these last few months, we can’t guarantee that rates are going to drop and we can’t be sure where they’ll land.
“So we run the numbers on today’s rate and look at options like seller concessions or a buydown to help the payment.”
The good news for buyers
Home prices, O’Neil pointed out, have held up despite higher rates – meaning waiting isn’t free. She’s advising clients that they can always look at refinancing in the future, but should also be comfortable with their payment at closing now in case the perfect opportunity never comes around.
Rising rates, meanwhile, aren’t necessarily a massive impediment for every buyer. Combating that perception is a key focus for O’Neil. “There are so many buyers right now who assume they’re priced out of the market,” she said.
“But because we’re seeing more seller concessions in our area, we’ve been able to get really creative with financing solutions that still fit their budget – whether that’s a permanent buydown, a temporary buydown, or a price reduction. There are a lot of different ways to structure a loan to get the payment to a comfortable level.”
